German Economic Recovery Expected to Be Modest

One German research firm expects the nation's economy to rebound this year and next. However, the rebound will be very modest. It will not be anywhere near those expected in the United States or China. The European Union's troubles will be too much of a drag.

Ifo says of the German economy:

An upwards tendency re-emerged in the German economy in spring 2013. The situation in the financial markets has eased thanks to subsiding uncertainty regarding the future of the European Monetary Union. The headwind in the world economy has also tailed off somewhat. The institutes expect gross domestic product in Germany to increase by 0.8% this year (68%-projection interval: 0.1% to 1.5%) and by 1.9% next year. The number of unemployed should continue to fall to an annual average of 2.9 million this year and 2.7 million in 2014.